Thursday, 28 August 2014 00:00
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One of the earliest documented references to professional intermediaries in the insurance market was in England as far back as 1575. With Britain’s trade developing, by the early 1700s insurance brokers, as such, had become an important component of the commercial scene in London.
Currently around 60% of the insurance business transacted in the UK is channelled through brokers, with Lloyds insisting on 100% of their business being introduced by brokers. Unfortunately, the same cannot be said of Sri Lanka with only around 25% of the general insurance business emerging via brokers, which is attributable largely to a lack of awareness of the role that a broker plays.
Unlike, say, a principal agent or an agent, an insurance broker is an entirely independent entity. In other words, a broker does not owe allegiance to any one particular Insurer, but in his dealings in the market place, it is in the client’s interests that, assume paramountcy in identifying the most cost effective cover, without diluting its scope, in any manner. A factor which distinguishes insurance brokers sharply from other forms of intermediaries is the acceptance of responsibility for negligent acts. The duties of care and skill required to be exercised are high.
It is believed that, the word broker evolves from what has been described as the middle upper English word ‘brocher’. A brocher was a man who sat at British docks such as Liverpool, London and Plymouth awaiting the boats bringing in Sherry & Port. When the wines were unloaded, the brocher tasted such wines and then advised prospective buyers on the quality of the goods and what price they should pay. For such services he received a commission from the seller. This system epitomises the role that an Insurance Broker is called upon to play in today’s world.
Senaratne Insurance Brokers Ltd. traces its origins to 1979, and currently operates with a staff of 35 highly experienced personnel, including three chartered insurance brokers, on the four corner stones of integrity, honesty, professionalism and good governance. It is of interest to add that, apart from other landmark achievements, Senaratne Insurance Brokers Chairman Nihal Senaratne is the only person ever invited by the Association of British Insurers to address the UK Insurance Industry in 1986.
Senaratne Insurance Brokers will shortly be celebrating their 35th anniversary in the insurance industry – a long and illustrious journey.
